Calculate the values of equity account

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Reference no: EM132629192

Suppose that on March 1 you take a long position in a June crude oil futures contract at $20/barrel (contract size=1,000 barrels)

a. How much cash or risk-free securities would you have to deposit to satisfy an initial margin requirement of 5%?

b. Calculate the values of your equity account on the following days, given the following settlement prices:

3/2 $20.50
3/3 $20.75
3/4 $20.25
3/5 $19.50
3/8 $19.00

c. If the maintenance margin requirement specifies keeping the value of the equity account equal to 75% of the initial margin requirement each day, how much cash would you need to deposit in your commodity account each day?

Reference no: EM132629192

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